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BharatiBT aims for a subscriber base of 75,000 by year-end

BharatiBT Internet Limited is all set to start its Internet services in Delhi, Bangalore and Bombay this month.

N Arjun, chief executive officer, BharatiBT has been reported as saying that the company has drawn up elaborate plans to attract a large customer base and retain them through affordable and qualitative services.

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"We expect a customer base of 75,000 by the end of the year." Arjun said.

BharatiBT Internet is a joint venture between Bharti Enterprises and British Telecom Plc. Bharti Enterprises has a stake of 51 per cent while British Telecom holds a 49 per cent stake in the company.

Arjun explained the tariff rates that BharatiBT will offer. "What we will give is a value proposition. We will give our customers a choice of tariffs which will be service based," he said.

Arjun claimed that the tariff rates would depend on input costs that can only comedown, directly affecting tariffs.

"Price is a function of quality of service and customer service. It is no doubt important but other factors are far more critical." He said.

BharatiBT Internet has decided to expand its client base by targeting both corporate and residential consumers.

The company will set up its own gateway and also use the BT Net earth station at London for linking. "We have applied to the Department of Telecommunications for permission to set up our own gateway. Our understanding is that the inter-ministerial committee set up by DoT has finalised the proforma and terms for private ISPs wishing to set up gateways," Arjun said.

The ISP business is one with high consolidation rate as it progresses. Many entrants are likely to either sell out or completely shut shop in the course of time due to intense competition, a fact BharatiBT is aware of.

"We initially expect about 250 ISPs in the market which is likely to come down to 150 by the end of the first year to 50 by the second and about 20 by the end of year three," Arjun said.

He explained that consolidation would happen as and when mergers and acquisitions take place in the ISP business. "Our aim is to become one of the leading ISPs in India," he said.

Arjun complained that one of the biggest constraints faced by ISPs was the delay in processing applications by the DoT, VSNL and the Mahanagar Telephone Nigam Limited. "The constraint is that the infrastructure provider is the service provider," he is reported to have said.

Compiled from the Indian Media

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